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vitfil [10]
3 years ago
12

On January 1, 2021, Legion Company sold $290,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December

31. The bonds were sold for $217,719, priced to yield 10%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of: (Round your answer to the nearest dollar amount.) Multiple Choice $8,700. $10,886.
Business
1 answer:
stira [4]3 years ago
6 0

Answer:

the bond interest expense for the six months ended June 30, 2021, in the amount of $10,8864

Explanation:

The computation of the interest expense is shown below

= Carrying Value of Bond × Effective interest rate

= $217,719 × 10% yield interest × 6 months ÷ 12 months

= $10,886

Hence, the bond interest expense for the six months ended June 30, 2021, in the amount of $10,8864

Therefore the second option is correct

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By what amount would net income differ if bad debt expense was computed using the percentage-of-receivables approach? Assume tha
Murljashka [212]

Answer:

By following the Accountants Principle and Dicksons policy of debiting Bad debt accounts as Accounts are written off, the Net income would have been impacted negatively (reduced) by the write off from Prior period of $31,330 only

However, by following the % of receivables approach, a total of $31,330 (Write off from prior period) + $9,240 (current period provision for bad debt) will impact the Net Income negatively (reduced)  = $40,570

Explanation:

Accounts receivable balance = $77,000

12% projected uncollectible debt = $9,240

Provision for bad debt under the % of receivables approach = $9,240

Amount written off related to prior year = $31,330

5 0
3 years ago
Consider the multifactor APT with two factors. Stock A has an expected return of 17.6%, a beta of 1.45 on factor 1, and a beta o
ehidna [41]

Answer:

The risk premium on factor 2 = 9.26%.

Explanation:

Let us denote the risk premium of factor 2 as x

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17.6 = 4.64 + 0.86x+5%

17.6 - 4.64 - 5= 0.86x

7.96 = 0.86x

x = 7.96/0.86 =9.2558

The risk premium on factor 2 = 9.26%.

5 0
3 years ago
Increasing the batch size on a resource with setups always increases the capacity of the resource. True or false?.
11111nata11111 [884]

false,Increasing the batch size on a resource with setups always increases the capacity of the resource.

<h3>What is resource?</h3>

All materials available in our environment that are technologically accessible, economically possible, and culturally sustainable that assist us to satisfy our needs and desires are referred to as resources.

All materials available in our environment that are technologically accessible, economically possible, and culturally sustainable that assist us to satisfy our needs and desires are referred to as resources. Resources are divided into two types based on their availability: renewable and non-renewable resources. They can also be characterized as actual or potential based on their level of development and use, as biotic or abiotic based on their origin, and as ubiquitous or localized based on their distribution (private, community-owned, national and international resources).

To know more about resource follow the link:

brainly.com/question/24514288

#SPJ4

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Supply chain management can be described as
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Supply chain management is managing the flow of goods and services from sourcing and handling raw materials, to work in progress inventory, to finished goods from the starting point to the consumer. There is a big focus on efficiency and proper timing.

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The ultimate goal of the marketing process is to do which of the​ following?
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Make money, attract buyers... What are your options?
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